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We do not need to tell that all the American can appear in a difficult situation as the financial situation does not change but people need to get prepared. As a result of these precautions, people started spending money on the goods that can be used for a long time and cannot get spoilt. A lot of financial experts remark that the customers started to pay attention to the durability of goods they buy and financially consumer spending and demand for this sort of goods climbed enormously.

In most situations, the increase in consumer spending can be a factor of the economic and individual wealth growth, but in this situation, we cannot deny the fact that people are getting prepared to something bad that can influence their liver and people do everything possible to prevent all these negative effects. The awaiting for tax rates increase and spending cuts, people want to get what they can before the prices for these products and services are not so high. Everyone understand that the price for these products will go higher when the tax rates increase and people will need to spend a lot more to get what they want.

The government does not want to solve their problems by decreasing the expenses and increasing the effectiveness of the economic model but they want to do it with the help of ordinary people that do not earn so much. One of the directions to spend money was the purchase of houses as people expects an increase in price for them and those who wanted to save, started buying them. As a result, the sales of houses increase by 0.4 percent according to the information provided by the Commerce Department. The demand for the products that can be used for a long time including machinery and computers demonstrates the increase of 0.7 percent. Besides, the high increase in unemployment rates was triggered by the desire of people to buy gift for relatives and friends.

Besides, the consequences of Sandy made people change their cars damaged during this hurricane. According to the information provided by the lawmakers, the increase of money gained by taxation will be equal to $600 billion and the government will try to increase spending cuts right in the 1st of January. This increase in demand for goods and services provides some encouragement for the development of the economic situation in the United States.

Besides, according to one of the senior U.S. economic experts at Societe Generale states that the new economic year will start rather slowly and there will not be a great boos in spending and profits of companies. The economic effectiveness will be rather gradual and people will spend money on just necessary things.

Source: http://www.paydayloansmag.com/u-s-economic-experts-on-gradual-economic-growth/

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